A call for honorable overdraft services
from "What happened to paying overdrafts honorably?" by Michael Moebs, Credit Union Times
Consumer advocate groups are coming down hard on both institutions who implement overdraft services that "prey on the weak" and the consultants who advise them to institute such programs. Mike Moebs agrees with the consumer groups. "Too many institutions are taking advantage of account holders. An honorable overdraft service can provide a meaningful benefit to consumers, if it's deposit-based and allows customers to opt out if they choose. An honorable overdraft service charges modest fees to cover overdrafts and provides qualifying consumers with high OD limits. By contrast, many institutions are charging excessive fees, setting low overdraft limits, and targeting lower income groups by enticing them with 'free checking' and then automatically enrolling them in an OD program. They have no chance to opt out, and the lack of clear communication is appalling." Moebs urges the industry to "do the right thing" and institute honorable overdraft services.
Written By: vhorizon
Date Posted: 10/24/2005
Number of Views: 2899